CBN grants approval to Abbey Mortgage Bank for Commercial Banking

Abbey Mortgage Bank Plc, one of Nigeria’s longest‑standing primary mortgage banks, has secured regulatory approval from the Central Bank of Nigeria (CBN) to convert into a commercial bank.

However, the bank expects to commence operations as a commercial bank in Q4 2026.

The approval is expected to unlock a major strategic milestone for the company, allowing the bank to expand beyond mortgage financing into comprehensive commercial banking services.

What the bank is saying

In a statement confirming the approval, Abbey Mortgage Bank said the regulatory green light marks the beginning of a “transformative era” in its business journey.

• Preparations for the transition are already underway, including technology integration, infrastructure expansion, and corporate rebranding ahead of full commercial banking operations later this year.
• Abbey also said it will retain its deep expertise in real estate financing even as it broadens its services to include enhanced electronic banking channels, tailored SME finance products, international trade services, and wealth management solutions.

Get up to speed 

Abbey’s transition to commercial banking has been in motion for months, supported by strategic decisions and strong financial performance.

At the Annual General Meeting (AGM) held on May 26, 2026, shareholders approved a N164.5 billion private placement and authorised the board to raise an additional N100 billion through various equity and debt instruments, subject to regulatory approvals.

Speaking at the meeting, the Chairman, Mr. Samuel Oni, described the capital raise as a cornerstone of the bank’s strategy to secure a regional commercial banking licence and position Abbey for its next growth phase.

• “By the time we are meeting next year, by the grace of God, we will be talking about Abbey Plc as a commercial bank with regional authorisation,” he said.

Abbey Mortgage Bank delivered one of its strongest financial performances in recent years, providing a solid foundation for its commercial banking ambitions.

• According to audited 2025 financial statements, the bank recorded a pre-tax profit of N3.12 billion, up 154.3% from N1.22 billion in 2024.
• Profit after tax rose to N2.16 billion, while earnings per share increased to 21 kobo from 11 kobo.
• Interest income climbed to N18.97 billion, driven by earnings from cash and short-term funds, investment securities, and loans.

The momentum has continued into 2026, with Q1 2026 profit hitting N750 million, reflecting a 108.79% increase compared to N359.342 million in Q1 2025 and exceeding its forecast by nearly 100%.

Market performance

The stock closed at N7.05 per share on Tuesday, June 2, 2026, marking a 4.4% gain from its previous close of N6.75.

The stock began the year at N6.40, giving it a 10.2% year-to-date gain, reflecting investor confidence amid the bank’s transition to commercial banking and its strong Q1 2026 profit performance.

What you need to know 

Abbey is expecting to start full commercial banking operations in Q4, 2026. The bank has said it will share details on the official launch date, new corporate identity, and product rollout in the coming months.

Beyond traditional mortgage services, the newly licensed commercial bank will be able to offer retail banking, corporate banking, digital payment solutions, trade finance, SME lending, and wealth management products.

The transition is aimed at enhancing customer offerings through broader electronic banking platforms and a more diversified suite of financial products.

Abbey’s upgrade is seen as part of a broader trend of financial sector consolidation and innovation in Nigeria, as lenders position themselves to meet evolving market demands and deepen financial inclusion.